PRESENTATION

Our financial statements are presented in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. We show certain of our financial statements on both a consolidated and a sector basis for our Automotive and Financial Services sectors. Intercompany items and transactions have been eliminated in both the consolidated and sector balance sheets. Where the presentation of these intercompany eliminations or consolidated adjustments differ between the consolidated and sector financial statements, reconciliations of certain line items are explained below in this Note and in Notes 5 and 11.

In the opinion of management, these unaudited financial statements reflect a fair statement of the results of operations and financial condition of Ford Motor Company, its consolidated subsidiaries, and consolidated VIEs of which we are the primary beneficiary for the periods and at the dates presented. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2010 ("2010 Form 10-K Report"). For purposes of this report, "Ford," the "Company," "we," "our," "us" or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise.

Adoption of New Accounting Standards

Business Combinations. On January 1, 2011 we adopted the new accounting standard on business combinations. The new standard requires public entities that present comparative financial statements to disclose the revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the prior annual reporting period. The new accounting standard did not have an impact on our financial statement disclosures.

Reconciliations between Consolidated and Sector Financial Statements

Deferred Tax Assets and Liabilities. The difference between the total assets and total liabilities as presented in our sector balance sheet and consolidated balance sheet is the result of netting of deferred income tax assets and liabilities. The reconciliation between the totals for the sector and consolidated balance sheets is as follows (in millions):



	June 30, 2011			December 31, 2010
Sector balance sheet presentation of deferred income tax assets:
Automotive sector current deferred income tax assets	$	306		$	359
Automotive sector non-current deferred income tax assets	2,340			2,468
Financial Services sector deferred income tax assets *	215			282
Total	2,861			3,109
Reclassification for netting of deferred income taxes	(758		)	(1,106		)
Consolidated balance sheet presentation of deferred income tax assets	$	2,103		$	2,003

Sector balance sheet presentation of deferred income tax liabilities:
Automotive sector current deferred income tax liabilities	$	244		$	392
Automotive sector non-current deferred income tax liabilities	300			344
Financial Services sector deferred income tax liabilities	1,585			1,505
Total	2,129			2,241
Reclassification for netting of deferred income taxes	(758		)	(1,106		)
Consolidated balance sheet presentation of deferred income tax liabilities	$	1,371		$	1,135

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* Financial Services deferred income tax assets are included in Financial Services other assets on our sector balance sheet.

NOTE 1. PRESENTATION (Continued)

Sector to Consolidated Cash Flow. We present certain cash flows from wholesale receivables, finance receivables and the Automotive acquisition of Financial Services debt differently on our sector and consolidated statements of cash flows. The reconciliation between totals for the sector and consolidated cash flows is as follows (in millions):



	First Half
	2011			2010
Automotive cash flows from operating activities of continuing operations	$	5,744		$	3,004
Financial Services cash flows from operating activities of continuing operations	2,133			2,157
Total sector cash flows from operating activities of continuing operations	7,877			5,161
Reclassifications from investing to operating cash flows:
Wholesale receivables (a)	(1,944		)	(248		)
Finance receivables (b)	293			244
Reclassifications from operating to financing cash flows:
Payments on notes to the Voluntary Employee Benefit Association ("VEBA") trust ("UAW VEBA Trust") (c)	—			1,300
Consolidated cash flows from operating activities of continuing operations	$	6,226		$	6,457

Automotive cash flows from investing activities of continuing operations	$	2,471		$	239
Financial Services cash flows from investing activities of continuing operations	560			3,376
Total sector cash flows from investing activities of continuing operations	3,031			3,615
Reclassifications from investing to operating cash flows:
Wholesale receivables (a)	1,944			248
Finance receivables (b)	(293		)	(244		)
Reclassifications from investing to financing cash flows:
Automotive sector acquisition of Financial Services sector debt (d)	—			(341		)
Elimination of investing activity to/(from) Financial Services in consolidation	(1,859		)	(434		)
Consolidated cash flows from investing activities of continuing operations	$	2,823		$	2,844

Automotive cash flows from financing activities of continuing operations	$	(5,106	)	$	(4,095	)
Financial Services cash flows from financing activities of continuing operations	(3,758		)	(6,553		)
Total sector cash flows from financing activities of continuing operations	(8,864		)	(10,648		)
Reclassifications from investing to financing cash flows:
Automotive sector acquisition of Financial Services sector debt (d)	—			341
Reclassifications from operating to financing cash flows:
Payments on notes to the UAW VEBA Trust (c)	—			(1,300		)
Elimination of investing activity to/(from) Financial Services in consolidation	1,859			434
Consolidated cash flows from financing activities of continuing operations	$	(7,005	)	$	(11,173	)

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(a)

In addition to the cash flow from vehicles sold by us, the cash flow from wholesale finance receivables (being reclassified from investing to operating) includes financing by Ford Credit of used and non-Ford vehicles. 100% of cash flows from wholesale finance receivables have been reclassified for consolidated presentation as the portion of these cash flows from used and non-Ford vehicles is impracticable to separate.


(b)	Includes cash flows of finance receivables purchased/collected from certain divisions and subsidiaries of the Automotive sector.


(c)	See "Notes Due to UAW VEBA Trust" in Note 11 for discussion of these transactions. Cash outflows related to this transaction are reported as financing activities on the consolidated statement of cash flows and operating activities on the sector statement of cash flows.


(d)	See "Automotive Acquisition of Financial Services Debt" in Note 11 for discussion of these transactions. Cash inflows related to these transactions are reported as financing activities on the consolidated statement of cash flows and investing activities on the sector statement of cash flows.

Venezuelan Operations

At June 30, 2011 and December 31, 2010, we had $121 million and $41 million, respectively, in net monetary assets (primarily cash and receivables partially offset by payables and accrued liabilities) denominated in Venezuelan bolivars. These net monetary assets included $207 million and $132 million in cash and cash equivalents at June 30, 2011 and December 31, 2010, respectively. As a result of regulation of foreign currency exchange in Venezuela, the official exchange rate of 4.3 bolivars to the U.S. dollar is used to re-measure the assets and liabilities of our Venezuelan operations for GAAP financial statement presentation. The Venezuelan government also controls securities transactions in the parallel exchange market. Our ability to obtain funds in the parallel exchange market has been limited. For any U.S. dollars that we obtain at a rate less favorable than the official rate, we realize a loss for the difference in the exchange rates. Continuing restrictions on the foreign currency exchange market could affect our Venezuelan operations' ability to pay U.S.-dollar denominated obligations as well as our ability to benefit from those operations.